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The market is approaching the next resistance zone.

Amazingly, the market completed all of wave iv on the Elliott Wave chart at Tuesday's low in an unorthodox fashion. The retrace was exceptionally shallow, but when we are in the heart of a third wave, this happens.

The market is approaching the next target region between 2,280 and 2,306 on the S&P 500.

As is shown on the 60-minute chart, we now have a more accelerated channel, as is normally seen in the heart of a third wave.

Moreover, I have now moved upper support higher to the 2,234 to 2,246 region, and we will continually move it higher as we move through the wave structure.

This is how we use what we have coined "Fibonacci Pinball" during impulsive moves.

As long as the upper support holds on all pullbacks, we should be readying ourselves to break out over the 2,300 region. Again, I still think we will need one more consolidation in wave iv before we are able to take out the 2,300 region.

As shown on the daily chart, we have a long-term channel residing just overhead, and we will likely need to "rest" before we are able to break into the upper channel in the S&P 500 and head to 2,400 next. But, once we move through the 2306 region, that will likely set up our next market melt-up phase.

See charts illustrating the wave counts on the S&P 500.

This article is commentary by an independent contributor.